Solar power plant model

For all interested in becoming a solar powered energy developer in India, it's important to comprehend the various business designs under which solar energy plants get built.

Power plant development belongs more towards the infrastructure sector rather than consumer product industry, in feeling these tend to be opportunities that pay back well ultimately, plus in these tend to be companies that count on long-term agreements without powerful short term purchase deals.

This post from Solar Mango discusses some of the crucial aspects that any developer of MW solar energy flowers ought to know.

Please be aware that this post is mainly about company models for MW-scale, grid attached power flowers rather than for roof solar energy plants that the company designs might be rather various!

For company interested in having MW scale solar power plants, initial and most important concern they need to ask by themselves is: who can buy the energy?

The response to this question to a substantial level will determine the business and revenue model the power plant, and in addition nearly determine the danger and return profiles. To a certain extent, the sort of customer could also figure out the economic returns on project.

Business Versions for MW Scale Solar

Broadly, you can state that purchase of energy is often to an electric utility (typically a government owned electrical energy board) or even a private company. Within the unique instance where in fact the personal organization is the master of the energy plant, it becomes a Captive Consumption model.

Each of the above business avenues is explained below.

Purchase to Utility (DISCOM)

Utility usually relates to state energy generation or distribution organizations (TANGEDCO, APTRANSCO, MAHAGENCO) or any other big main power entities eg NTPC.

There are two techniques you might offer power to these condition resources.

Sale to Private Customer

A private business is liberated to purchase power from whoever they desire, with only a few constraints affixed. You could offer the energy generated to personal businesses as well. This path typically is through an electric acquisition agreement.

Captive Intake

For power plant designers whom also happen to be operating energy intensive companies, the third route to sell power is by the captive use of the solar power generated by their own power-plant.

Solar generation under captive usage normally entitled to RECs, provided that no concessions were obtained.